If Throughout an Accounting Period the Fees for Legal Services

question 52

Multiple Choice

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

• A) Debit Cash and credit Legal Fees Earned.
• B) Debit Cash and credit Unearned Legal Fees.
• C) Debit Unearned Legal Fees and credit Legal Fees Earned.
• D) Debit Legal Fees Earned and credit Unearned Legal Fees.
• E) Debit Unearned Legal Fees and credit Accounts Receivable.

---

Definitions:

Sales or Lease Contract

A legal agreement where a seller agrees to transfer the ownership of goods to a buyer for a price, or a lessor agrees to grant the use of a property to a lessee for a specified period in return for payment.

Provision

A specific condition or requirement outlined in a legal document, contract, or agreement.

Express Warranty

An express warranty is a seller's promise or guarantee that a product will meet a certain quality or functionality standard.

Value or Worth

The importance, usefulness, or monetary valuation of something, often subject to change based on market demand or condition.